Consultants and town staff returned to the board on Dec. 17 to clarify the Somerset sewer extension schedule, financing options and build‑out considerations. Engineers explained the State Revolving Fund (SRF) process: the draft Intended Use Plan (IUP) is expected early 2026; if the town does not make the required local appropriation by the May town meeting/June 30 deadline, SRF funding will likely be offered to the next project on the IUP and Nantucket would need to reapply in July 2026 for a 2027 slot.

Staff reviewed the project budget ($43.3M total; roughly $36.8M SRF‑eligible sewer work) and noted a 20% contingency is in the current estimate that will be reduced as design and bidding proceed. Consultants outlined three main approaches to recover costs from properties served: (1) rely on the sewer capacity fee (which can be scaled and paid over time), (2) adopt betterments assessed over time or (3) a hybrid of fees and betterments. Weston & Sampson said the existing sewer capacity fee was set years ago and likely needs to increase (the consultants discussed a $40/gallon example) to recapture a similar share of costs that previous privilege/capacity fees did.

Staff also described site‑specific constraints: the town recently acquired 77 Bartlett Road for the Somerset pump station and the houses there have failed septic systems; options discussed included replacing septic systems as interim housing or connecting to sewer once the collection system is built. Board members raised concerns about build‑out, potential incentives for additional development and equity for existing homeowners; consultants said a detailed lot‑by‑lot build‑out analysis would be time‑consuming and recommended a workshop and targeted analyses instead.

Why it matters: SRF funding and the possibility of favorable interest rates materially change the net cost to taxpayers and property owners. Missing the SRF timing could increase the town’s financing cost dramatically and force larger debt exclusions or different cost recovery strategies.

Next steps: staff will prepare phasing options and a clearer analysis of the sewer capacity fee vs. betterments for discussion in January workshops, and the board will decide whether to include the Somerset sewer article on the 2026 warrant in time to meet SRF deadlines.